http://www.ft.com/cms/s/0/371f3940-9691-11de-84d1-00144feabdc0.html?nclick_check=1
Financial Times, 1 Sep 2009
West sparks Singapore fund
shake-up
The Government of Singapore
Investment Corporation, one of the world's biggest sovereign wealth
funds, yesterday announced a senior management shake-up prompted by
concerns about protectionism and regulatory change in the
west.
GIC, estimated by Deutsche Bank to have assets of about $300bn,
said it had appointed Lim Chow Kiat to the new post of president
for Europe, based in London, while Anthony Lim Weng Kin would
become president for Americas, based in New York.
The new regional heads - both internal appointments - will outrank
the regional representatives of GIC's three investment subsidiaries
and will be expected to promote contacts with policy makers and
opinion formers as the fall-out from the global financial crisis
becomes clearer.
"The appointments come at a time when critical changes will be made
to the global financial system, and there is a need for GIC to not
only gather but also contribute deeper insights into investment
opportunities and challenges in the coming years," GIC said.
GIC declined to comment further on the appointments. However, Tony
Tan, GIC's deputy chairman and executive director, said in a speech
last month that Asian financial institutions faced both "tremendous
opportunities" and major challenges in western countries.
"A lack of co-ordination in regulatory architecture and practice,
together with the rising global unemployment in coming years, may
lead to regional trading and financial blocs or at worst, a retreat
to protectionism and nationalism," he said.
The latest GIC management shake-up follows the appointment in June
of Lim Siong Guan, a former head of the Singapore civil service, as
GIC group president.
The fund, chaired by Lee Kuan
Yew, the former Singapore prime minister, says it intends to remain
a long-term investor in western financial groups, in spite of
unrealised losses on investments in UBS and Citigroup made at the
onset of the financial crisis in late 2007.
Mr Lee said in February that the
fund's value had fallen by 25 per cent from its peak because of the
global financial turmoil.
Separately, Moody's credit ratings agency said yesterday that its
ratings outlook for Singapore Power and PSA, the Singapore ports
company, would be changed in the event of a material sale of stakes
by Temasek, the city state's other sovereign wealth fund.
Moody's said a new operating charter unveiled by Temasek last week
was consistent with its existing aim of diversifying its holdings,
and was factored into its rating. However, its ratings for PSA and
Singapore Power benefited from its expectations of support by
Temasek.
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